SPCS Form Four
Principles of Accounts
Exercises on Final Accounts
FINAL_EX01
From the following trial balance and additional information, prepare a trading and profit and loss account
for the year ended 31 March 2007 and a balance sheet as at the same date.
Trial balance as at 31 March 2007:
Dr ($)
Tax payable
Net sales
Net purchases
Stock
Salaries & wages
Rent & rates
Water & electricity
Trade creditors
Trade debtors
Insurance
Cash in hand
Cash at bank
Plant & machinery
Furniture & fittings
Capital
Drawings
Fixed deposits with bank
Bank loan
Provision for depreciation – plant & machinery
Provision for depreciation – furniture & fittings
Cr ($)
90,000
930,000
320,000
30,000
180,000
140,000
21,000
119,600
321,000
51,000
20,000
134,000
420,000
97,600
700,000
15,000
300,000
2,049,600
170,000
30,000
10,000
2,049,600
Additional information:
(a) Closing stock amounted to $70,000.
(b) Provision for depreciation is to be made for the current year:
Plant & machinery @ 10% on book value.
Furniture & fittings @ 8% on book value
(c) Accrued expenses: Wages $8,000.
Water & electricity $3,000.
(d) Prepaid expenses: Rent & rates $14,000
Insurance $25,000.
(e) Accrued income: Accrued interest up to and including 31 March 2007: $13,000.
(f) Provide for doubtful debts: 4% of total debtors.
Required:
Prepare a trading and profit and loss account for the year ended 31 March 2007 and a balance sheet as
at that date.
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D. Ko
SPCS Form Four
Principles of Accounts
FINAL_EX02
The following trial balance was extracted from the book of William Watson, a sole trader, at the close of
business on 31 October 2008:
Debtors & creditors
Discounts
Capital as at 1 November 2007
Drawings
Bank overdraft
Bills receivable & payable
Purchases & sales
Sales & purchases returns
Wages & salaries
Office furniture
Delivery van
Van running expenses
Rent & rates
Cash
Stock as at 1 November 2007
Bad debts written off
Sundry expenses
Provision for bad & doubtful debts
Dr ($)
4,110,000
530,000
Cr ($)
2,070,000
290,000
5,200,000
2,760,000
550,000
9,840,000
720,000
3,250,000
800,000
960,000
420,000
710,000
90,000
1,970,000
270,000
260,000
1,090,000
380,000
17,630,000
360,000
220,000
27,240,000
27,240,000
Additional notes:
(a)
(b)
(c)
(d)
(e)
Stock as at 31 October 2008 - $3,040,000.
The company decided to increase its provision for the year to $260,000 in total.
$70,000 wages remained outstanding on 31 October 2008.
$60,000 rates were paid in advance on 31 October 2008.
Provision for depreciation: Office furniture – 20% on cost
Delivery van – 30% on (net) book value
Required:
Prepare a trading and profit and loss account for the year ended 31 October 2008, together with a
balance sheet as at that date.
Page 2
D. Ko